Don't Nod 2023 Half-Year Results

Key insights

6 takeaways

01
DON'T NOD ended H1 2023 with €64.2 million in cash and cash equivalents, significantly bolstered by a €45.9 million capital increase in February 2023.See it on page 4
02
Total operating revenues grew 10.3% year-over-year to €16.5 million, driven by a 28.2% increase in back-catalog sales from franchises like Vampyr and Life is Strange.See it on page 2
03
The company recorded a net loss of €0.9 million for H1 2023, a decline from the €1.7 million net income reported in the same period of 2022 due to higher operating expenses and a €1.3 million non-recurring asset realignment charge.See it on page 3
04
Capitalized production rose 21.4%, reflecting an accelerated development pace for the studio's 2023–2025 project pipeline.See it on page 2
05
The studio is managing a portfolio of eight original creations, including five self-published titles, with a strategic goal to maintain a release cadence of two games per year.See it on page 4
06
Future growth is focused on the action-RPG and narrative adventure genres, with upcoming key releases including Jusant and Banishers: Ghosts of New Eden.See it on page 4

Summary

The 2023 half-year financial results for DON'T NOD, an independent French video game developer and publisher, reflect a period of strategic investment and operational transition. The company reported total operating revenues of €16.5 million, a 10.3% increase over the same period in 2022. This growth was primarily driven by a 28.2% rise in sales from its back catalog—notably the Vampyr and Life is Strange franchises—and a 21.4% increase in capitalized production, signaling an acceleration in the development of its 2023–2025 project pipeline.

Despite the revenue growth, the company recorded a net loss of €0.9 million for the first half of 2023, compared to a net income of €1.7 million in the prior year. This shift is attributed to increased operating expenses, including higher staff costs to support project growth and a €1.3 million non-recurring expense related to the strategic realignment of certain pre-production assets. Operating EBITDA stood at €1.1 million, reflecting the costs associated with the studio's transition toward a greater share of self-published projects.

The company significantly strengthened its balance sheet during this period, ending the first half of 2023 with €64.2 million in cash and cash equivalents, up from €34.9 million at the end of 2022. This liquidity was bolstered by a successful €45.9 million capital increase in February 2023. With a robust pipeline of eight original creations, including five self-published titles, the studio is focused on maintaining a release cadence of two games per year. Future growth is centered on the action-RPG and narrative adventure segments, with key upcoming releases including Jusant and Banishers: Ghosts of New Eden.